2016 Top Markets Report - Automotive Parts

(Jacob Rumans) #1

communications allows automobiles to warn each
other of otherwise unseen dangers. Allowing
vehicle-to-infrastructure communication makes
possible traffic signals that switch to green as traffic
approaches. Vehicle-to-other-communication allows
the vehicle to know the movement of individuals
based on the smart phone in their pockets.


Vehicles are also beginning to drive themselves.
Most firms already offer vehicles that provide a
number of autonomous functions. These include
adaptive cruise control systems that adjust speed to
maintain safe following distances or active safety
braking systems that detect and avoid crashes. The
addition of improved sensor technologies, increases
in computing power, more accurate maps and
ongoing research are quickly closing the gap
between these systems and full automation. The
software in these vehicles will not be perfect, but
the computers will not suffer from distraction and
will have significantly faster reactions times than
human drivers. They are expected to lead to
dramatic reductions in accident rates. Showing how
the vehicle and consumer electric markets are
merging, Google, on the flip side of vehicle
manufacturers, has logged over a million miles in its
self-driving vehicle. The Silicon Valley start-up, Tesla,
is already offering some of the most sophisticated
vehicle automation options currently available in its
“Autopilot” highway driving and “Summons” self-
parking feature suite.


Fully automated vehicles could completely change
the automotive market. They could provide
extremely low-cost on-demand transportation
services, displacing most, if not all, taxi, bus, limo


and truck drivers. They could dramatically reduce
the number of vehicles needed for equivalent levels
of service by, for instance, providing taxi or bus
services during the peak commuting periods and
offering package delivery services during off peak
times with no driver rest requirements. This would
mean a substantial contraction in vehicle and parts
manufacturing in addition to the changes to the
vehicle service markets. Autonomous vehicles can
dramatically reduce the need for vehicle parking,
making valuable city land available for other uses.
With reaction times in milliseconds and
communications with vehicles around them, they
can enable increased throughput on roads and
highways. They can also travel at much closer
distances, enabling platooning to slip stream for
reduced air drag on the highway and improve
highway energy efficiency. They could also reduce
interregional rail and air travel by making longer
road travel less burdensome (and counteract
possible congestion reduction benefits noted above).

Top Opportunities:


  • Weight reduction technologies

  • Advanced engine control technologies

  • Turbos

  • Advanced transmissions

  • Vehicle accessory electrification
    technologies

  • Sensors

  • Advanced batteries and battery inputs

  • Advanced electronics

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